Qianjiang Water Resources Development Co., Ltd. (600283) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Qianjiang Water Resources Development Co., Ltd.

Why is Qianjiang Water Resources Development Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 8.45%

The company has been able to generate a Return on Capital Employed (avg) of 8.45% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 13.95% and Operating profit at 6.14% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 10.55% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 13.95% and Operating profit at 6.14% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at CNY 260.98 MM
ROCE(HY) Lowest at 6.93%
DEBTORS TURNOVER RATIO(HY) Lowest at 2.71 times

With ROE of 8.76%, it has a very expensive valuation with a 1.40 Price to Book Value

Over the past year, while the stock has generated a return of -16.10%, its profits have fallen by -9.1%
At the current price, the company has a high dividend yield of 2

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Utilities)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Qianjiang Water Resources Development Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Qianjiang Water Resources Development Co., Ltd.

-16.1%

-0.50

21.14%

China Shanghai Composite

3.23%

0.23

14.72%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.95%

EBIT Growth (5y)

6.14%

EBIT to Interest (avg)

4.94

Debt to EBITDA (avg)

2.59

Net Debt to Equity (avg)

0.77

Sales to Capital Employed (avg)

0.41

Tax Ratio

18.53%

Dividend Payout Ratio

64.88%

Pledged Shares

Institutional Holding

ROCE (avg)

7.90%

ROE (avg)

10.55%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.40

EV to EBIT

22.15

EV to EBITDA

11.30

EV to Capital Employed

1.22

EV to Sales

2.77

PEG Ratio

Dividend Yield

1.98%

ROCE (Latest)

5.50%

ROE (Latest)

8.76%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-8What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 260.98 MM

ROCE(HY)

Lowest at 6.93%

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.71 times

RAW MATERIAL COST(Y)

Grown by 5.21% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 85.58 %

Here's what is not working for Qianjiang Water Resources Development Co., Ltd.

Debtors Turnover Ratio

Lowest at 2.71 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Operating Cash Flow

Lowest at CNY 260.98 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Highest at 85.58 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 5.21% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales